Home prices rose in October, expected to continue to increase slowly

Home prices continued to raise in October, according to the October Home Price Index and HPI Forecast by CoreLogic.

Home prices, including distressed sales, increased annually by 6.7 percent in October 2016, and increased 1.1 percent from September, according to the report. Excluding distressed sales, prices increased 1 percent month-to-month, and prices increased by 6.1 percent.

The country has seen 57 consecutive months of year-of-year increases, including distressed sales. Yet, the increase has slowed, no longer showing double-digit raises.

“While national home prices increased 6.7 percent, only nine states had home price growth at the same rate of growth or higher than the national average because the largest states, such as Texas, Florida and California, are experiencing high rates of home price appreciation,” CoreLogic Chief Economist Frank Nothaft said.

The report predicted that home prices will raise 4.6 percent year-to-year, and .2 percent by next month.

“Home prices are continuing to soar across much of the U.S. led by major metro areas such as Boston, Los Angeles, Miami and Denver.  Prices are being fueled by a potent cocktail of high demand, low inventories and historically low interest rates,” said Anand Nallathambi, president and CEO of CoreLogic. “Looking forward to next year, nationwide home prices are expected to climb another 5 percent in many parts of the country to levels approaching the pre-recession peak.”

Pennsylvania saw a 0 percent month-to-month percent change, and a 2.8 percent year-over-year change. The report predicted .1 percent month-over-month change, and a 3.9 year-over-year change. Home prices in the commonwealth are foretasted to continue to rise over the next five years, according to the report.